By Daniel Hunter

According to the Nationwide building society the housing market will take time to gain momentum, despite a rise in prices in October compared with the previous month.

The building society said prices rose 0.6% last month, more than offsetting the 0.4% drop in September. However, property values were 0.9% down on the same month in 2011, it added.

The average home was valued at £164,153 in October, the Nationwide said. It also said it expected the property market to remain subdued until the economic climate - including wages and employment levels - improved in the UK.

"UK house prices increased by 0.6% in October, more than offsetting the 0.4% decline recorded the previous month," Robert Gardner, Nationwide's Chief Economist, said.

"Monthly price changes have failed to establish a strong trend in either direction over the past six months, with three months of increases and three months of price declines since May 2012.

"The annual pace of change continues to display a picture of relative stability, with house prices down just 0.9% compared to October 2011. This maintains the pattern that has been evident since late 2010, with annual price growth remaining in a narrow band between +1.5% and -1.5% on all but two occasions over the past two years."

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